objectives of protecting and preserving the park or of providing necessary and appropriate services to the public at reasonable rates. Paragraph (3) directs the Secretary to establish new minimum requirements and reinitiate the competitive selection process if all proposals either fail to meet the minimum requirements or are rejected by the Secretary. Subsection (e) sets forth the criteria to be used by the Secretary in selecting the best proposal. The criteria include the responsiveness of the proposal to the objectives of protecting and preserving park resources and of providing necessary and appropriate facilities and services to the public at reasonable rates; the experience and related background of the applicant, including past performance and expertise in providing the same or similar services; the financial capability of the applicant; and the proposed franchise fee. The subsection makes clear that the consideration of revenue to the United States is to be subordinate to the objectives of protecting and preserving park resources and of providing necessary and appropriate facilities and services to the public at reasonable rates. Subsection (f) requires the Secretary to submit to the Committee on Energy and Natural Resources of the United States Senate and the Committee on Natural Resources of the U.S. House of Representatives any proposed concessions contract with anticipated gross receipts in excess of $5 million (indexed to 1993 constant dollars) or for a duration of ten or more years. The Secretary is prohibited from ratifying any proposed contract until at least 60 days after such Congressional notification. Subsection (g)(1) states that except as provided in paragraph (2), the Secretary shall not grant a concessioner a preferential right to renew a concessions contract. Paragraph (2) directs the Secretary to grant a preferential right of renewal for a concessions contract for outfitter or guide services, provided that the contract does not grant the concessioner an interest in any structure, fixture, or improvement (as provided in section 11). In addition, the Secretary is directed to grant a preferential right of renewal for any concessioner who the Secretary estimates will have annual gross revenues of no more than $500,000, regardless of whether such concessioner has an interest in any structure, fixture, or improvement pursuant to section 11. With respect to both the outfitter and guide concessioners and concessioners with gross revenues of $500,000 or less, the Secretary must determine that the concessioner has operated satisfactorily during the previous contract term, and that the concessioner's proposal for the new contract satisfies the minimum requirements established by the Secretary. Subsection (h) prohibits the Secretary from granting a concessioner a preferential right to provide new or additional services at a park. Section 7(a) provides that franchise fees, however stated, shall not be less than the minimum fee established by the Secretary for each contract. The Secretary is directed to determine the minimum fee in a manner that will provide the concessioner with a reasonable opportunity to realize a profit on the operation as a whole, commensurate with the capital invested and the obligations assumed. Subsection (b) states that if multiple contracts are awarded to authorize concessioners to provide the same or similar outfitting, guide, river running, or other similar services at the same approximate location or resource within a park, the Secretary is required to establish an identical franchise fee for all such contracts, to reflect fair market value, as determined by the Secretary. Section 8(a) establishes a special account in the Treasury of the United States for receipts collected pursuant to this Act. Subject to appropriation, 50 percent of the franchise fees receipts collected are to be allocated among park units in the same proportion as the percent of franchise fees collected, and 50 percent are to be allocated among park units on the basis of need, in a manner to be determined by the Secretary. Monies expended for parks are to be used for resource management and protection, maintenance activities, interpretation, and research. Subsection (b) directs the Secretary, where practicable, to require a concessioner to establish a Park Improvement Fund in lieu of collecting all or a portion of the franchise fees. The concessioner would be required to deposit the franchise fees that would otherwise be collected by the contract into the fund. Monies from the fund would be expended by the concessioner solely as directed by the Secretary for activities and projects within the park which are consistent with the park's general management plan, concessions plan, and other applicable plans, and which the Secretary determines will enhance public use, safety, and enjoyment of the park. The fund could not be used to fund routine, operational maintenance of facilities. The subsection also sets forth detailed requirements for the concessioner in maintaining the fund. Section 9(a) provides that a concessions contract shall be awarded for a term of up to 10 years, although the Secretary may award a contract for a term of up to 20 years, if the Secretary determines that the contract terms and conditions necessitate a longer term. Subsection (b) states that a temporary concessions contract shall be for a term of not more than two years. Section 10(a) provides that a concessions contract may not be transferred, assigned, sold, or otherwise conveyed without prior written notification to, and approval of the Secretary. The Secretary is prohibited from approving any conveyance if the Secretary determines that the new concessioner is, or is likely to be, unable to completely satisfy all of the requirements, terms, and conditions of the contract; or that the conveyance is not consistent with the objectives of protecting and preserving the park; or of providing necessary and appropriate facilities or services to the public at reasonable rates. The subsection makes clear that approval shall not be unreasonably withheld by the Secretary. Subsection (b) directs the Secretary to notify the Committee on Energy and Natural Resources of the United States Senate and the Committee on Natural Resources of the U.S. House of Representatives within 30 days after receiving a proposal to convey a concessions contract. Secretarial approval of any conveyance may not occur until 60 days after such notification to the Committees. Section 11 pertains to the protection of concessioner investments. Subsection (a)(1) provides that a concessioner who has acquired or constructed, or is required under an existing concessions contract to acquire or construct, any structure, fixture, or improvement on Federal land within a park shall have a possessory interest in such structure, to the extent provided by such contract. paragraph (2) makes clear that this provision does not create a new possessory interest for a concessioner whose contract does not provide for such a possessory interest. Paragraph (3) states that with respect to a concessions contract entered into on or after the date of enactment of this Act, the provisions of subsection (b) (dealing with new structures and the gradual reduction in the value of the possessory interest) shall apply to such structure, except that for the purpose of establishing the value of the interest, the value of the possessory interest as of the termination date of the previous concessions contract shall be used in lieu of the “actual original cost" or building the structure. Subsection (b)(1) provides that on or after the date of enactment of this Act, a concessioner who constructs or acquires a new, additional, or replacement structure, fixture, or improvement, within a park shall be entitled to receive from the United States, or a successor concessioner, payment equal to the actual original cost of acquiring or constructing such structure, less straight line depreciation, in the event the concessioner is not awarded the subsequent contract or the contract is terminated by the Secretary. The structure is to be depreciated over its estimated useful life, although the depreciation period may not exceed the depreciation period used for such asset for Federal income tax purposes. Paragraph (2) states that if a concessioner is not awarded the subsequent contract or the contract is terminated prior to the full depreciation of the interest, the concessioner shall be entitled to receive from the United States, or the successor concessioner, payment equal to the value of the concessioner's remaining interest in such structure. The paragraph also makes clear that a successor concessioner may not revalue the interest in the structure, the method of depreciation, or the estimated useful life of the structure. Paragraph (3) provides that title to any such structure, fixture, or improvement shall be vested in the United States. Subsection (c) makes clear that the provisions of this section do not affect the obligation of a concessioner to insure, maintain, or repair structures assigned to the concessioner. Section 12 provides that the reasonableness of a concessioner's rates and charges to the public shall be judged primarily by comparison with those rates and charges for similar facilities and services. Section 13(a) directs the Secretary to publish regulations establishing standards and criteria for evaluating the performance of concessions operations within 180 days after the date of enactment of this Act. Subsection (b)(1) requires the Secretary to conduct periodic evaluations of each concessioner to determine whether such concessioner has performed satisfactorily. The Secretary is to provide a concessioner rated as operating unsatisfactorily with an analysis of the minimum requirements necessary for the operation to receive a satisfactory rating. Paragraph (2) authorizes the Secretary to terminate a concessions contract if the concessioner fails to meet the minimum operational requirements identified by the Secretary within the time limits established by the Secretary. Paragraph (3) provides that if the Secretary terminates a contract pursuant to this section, the Secretary is required to solicit proposals for a new contract consistent with the provisions of this Act. Subsection (c) directs the Secretary to notify the Committee on Energy and Natural Resources of the United States Senate and the Committee on Natural Resources of the U.S. House of Representatives of each unsatisfactory rating and of each contract terminated pursuant to this section. Section 14 requires each concessioner to maintain such records as the Secretary requires to enable the Secretary to determine that all terms of the concessioner's contract are being faithfully performed. The subsection also authorizes the Secretary to have access to such financial information as the Secretary deems necessary to ensure that the terms and conditions of the contract are being complied with by the concessioner. Section 15 states that the provisions of a 1932 Act relating to the leasing of Federal buildings and properties shall not apply to concessions contracts. Section 16 makes clear that the provisions of this Act do not amend, supersede, or otherwise affect any provision of the Alaska National Interest Lands Conservation Act. COST AND BUDGETARY CONSIDERATIONS The Committee has requested that the Congressional Budget Office provide a cost estimate for this measure. The cost estimate was not available at the time to report was filed. When the estimate becomes available, the Chairman will request that it be printed in the Congressional Record for the advice of the Senate. REGULATORY IMPACT EVALUATION In compliance with paragraph 11(b) of Rule XXVI of the Standing Rules of the Senate, the Committee makes the following evaluation of the regulatory impact which would be incrurred in carrying out S. 208. The bill is not a regulatory measure in the sense of imposing Government-established standards or significant economic responsibilities on private individuals and businesses. No personal information would be collected in administering the program. Therefore, there would be no impact on personal privacy. Little, if any, additional paperwork would result from the enactment of S. 208, as ordered reported. EXECUTIVE COMMUNICATIONS On June 11, 1993, the Committee on Energy and Natural Resources requested legislative reports from the Department of the Interior and the Office of Management and Budget setting forth Executive agency recommendations on S. 208. These reports had not been received at the time the report on S. 208 was filed. When the reports become available, the Chairman will request that they be printed in the Congressional Record for the advice of the Senate. The testimony provided by the Department of the Interior at the Subcommittee hearing follows: STATEMENT OF HON. BONNIE R. COHEN, ASSISTANT SEC- Mr. Chairman and Members of the Subcommittee, I appreciate the opportunity to appear before you today to present the views of the Department of the Interior with respect to S. 208, a bill designed to update the concessions policy of the National Park Service as set forth in the 1965 Concessions Policy Act. As you know, the 1965 Act laid the foundation of the National Park Service's current concessions program by recognizing the integral role of concessioners in the furtherance of the mission of the Park Service: "preserving the scenery, wildlife, and natural and historic elements of the parks and providing for their enjoyment in a way that leaves them unimpaired for future generations." The primary and essential purpose of concssioners, as S. 208 acknowledges, is the provision of service to the visitors, not revenue to the Treasury, though the latter is undeniably relevant in these days of constrained budgets and emphasis on securing a fair return for privileges gfanted. Indeed, the quality of concesions operations often defines the experience of a large percentage of park visitors, by providing such requirements as food, lodging, and guide services to enable visitors to take full advantage of park resources. It is the position of this Administration that quality of these and other services will be significantly reinforced through open competition. This is fundamental to our approach to concessions reform and it is also the premise of S. 208. I am here, therefore, to express the Department of the Interior's strong support of S. 208 and our desire to work with you to make it and our new regulatory program even more effective agents of reform. Before I proceed with my testimony, however, I think it appropriate both to recognize the Chairman for his leadership on this important matter and to give credit as well to former Secretary Manuel Lujan and former Park Service Director James Ridenour for their efforts in concessions management and for raising public awareness of the need for concessions reform. By way of framing this discussion in a historic matte, the first concessions were typically modest, family-owned operations, often there before the parks themselves providing services to a few adventurous visitors. In 1992, 275 million people visited the National Parks. That is nearly seven times as many as inhabited this country when the first concessionaires were operating in Yellowstone National Park in 1872. Back then, visitor services could not |